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This guy has 800K in his CPF. (AK responds to HWZ Forum.)

A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que...

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A great crash is coming and I am ready (UPDATED).

Tuesday, July 4, 2017

Reader says...
Grateful if you could please talk to yourself on what are criteria for stock selection when buying stocks using my CPF OA?

Given that cpf money is sacrosanct, naturally we have to be more selective and careful.

Grateful for your self talk please?

AK says...

CPF-OA money? 

It is quite simple. 

I wait for a market crash. ;)

Is a market crash coming soon? 

Your guess is as good as mine.

I cannot predict a crash. 

I can only prepare for one.


"I am ready for a great crash."

How to have peace of mind as investors?
I explained how the CPF-OA money should be the last war chest we use because it earns 2.5% per annum in interest, risk free.

I also said many times before not to borrow money for investments.

The reason is simple.

We don't want to be caught in a situation where we might have to liquidate our investments at times and prices not of our own choosing.

If a market crash happens, we would be glad we did not borrow any money to invest with.

There is no free lunch in this world.

Banks (and brokerages) are fair weather friends.

Related posts:
1. Simple investment wisdom.
2. Holistic approach.
A bird in hand is worth two in the bushes (provided that they are of the same size). If AK says so, it must be so.


AK71 said...

Remember that media headlines should not be what is driving your overall strategy and, instead, thoughtful analysis of your goals (and willingness to absorb pain in market down periods) is what is necessary for a successful investment strategy.

Decide which type of investor you are before you invest and make sure the overall strategy reflects your view of the world as well as the degree to which you can afford to be completely wrong.

AK71 said...

Reader says...
I attended a few free investment talks with hope to gain knowledge.
Many are collaborated with broker firms promoting margin accounts.
What is your opinion on these margin accounts?

AK says...
There is no free lunch in this world. 😛
Of course, they will want to make money from you.

Reader says...
But do you do margin?

AK says...
No, I don't.

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